The Firing, Fallout, and Reinstatement of Sam Altman

Key Insight

On Thursday, November 16, 2023, the three independent board members and Ilya Sutskever voted to fire Sam Altman and remove Greg Brockman from the board, due to a perceived lack of trust and consistent candor. The decision was kept secret from Altman until the next day, when he was informed via a Google Meet call and given no specific reasons. Immediately after, he was locked out of his computer, and the news was publicly announced via a terse blog post on OpenAI's website, citing that Altman 'was not consistently candid' and 'hindered the board's ability to exercise its responsibilities.'

The firing triggered immediate global outcry, described as an 'atom bomb' among tech CEOs. Altman and Brockman, advised by crisis communications expert Chris Lehane, rallied allies. They publicly conveyed shock and gratitude while internally questioning the board's actions. Brian Chesky publicly supported Altman, fueling a narrative among his allies that it was an 'Ilya coup.' Murati, initially agreeing to stabilize the company as interim CEO, felt betrayed by the board's assumption of her full support for the firing. She, along with the executive team, issued an ultimatum to the board, demanding explanations or their resignations.

Negotiations for Altman's return ensued, but the board's unexpected appointment of Emmett Shear as interim CEO on Sunday, November 19, stunned Altman and the executive team. In response, Microsoft CEO Satya Nadella offered Altman and Brockman positions at Microsoft, and over 700 of OpenAI's 770 employees signed a letter threatening to quit and join Microsoft unless Altman was reinstated and the board resigned. Sutskever publicly regretted his participation, leading to a swift resolution. Altman returned as CEO but not to the board, and an independent investigation into the events leading to his firing was agreed upon, marking a period employees referred to as 'the blip.'